Ethereum’s Rapid Growth Surpasses Bitcoin in Fund Holdings
In a significant shift within the cryptocurrency landscape, Ethereum is outpacing Bitcoin in fund holdings growth, capturing the interest of institutional investors. This trend has been marked by a notable rise in Ethereum ETF inflows since the beginning of the year, reflecting a growing belief in ETH’s potential.
Ethereum Leads Bitcoin in Institutional Fund Holdings
According to a detailed analysis by CryptoQuant, institutional investors are increasingly allocating their capital towards Ethereum, marking a departure from the traditional dominance of Bitcoin. The data highlights a substantial difference in how these two leading cryptocurrencies are attracting long-term investments. While both Ethereum and Bitcoin continue to draw institutional interest, Ethereum’s growth rate has been notably more robust over the past year.
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Bitcoin currently enjoys a fund holding of approximately 1.3 million BTC, reflecting a 36% increase over the past year. This steady growth is consistent with Bitcoin’s role as a macroeconomic hedge against inflation. The analysis underscores that Bitcoin’s institutional capital inflow is stable and less influenced by short-term market fluctuations.
In contrast, Ethereum’s fund holdings have surged dramatically. With a total of 6.8 million ETH, Ethereum’s holdings have increased by an impressive 138% year-over-year. This growth aligns with the rise in spot ETH ETF inflows, increased staking activity, and Ethereum’s pivotal role as the foundation layer for decentralized finance (DeFi), tokenization, and layer-2 solutions.
The Ethereum/Bitcoin fund holdings ratio further illustrates this shift in institutional preferences. A year ago, Ethereum’s fund holdings were about three times that of Bitcoin’s. Now, this ratio is nearing five, suggesting a sustained strategic realignment rather than a temporary market trend. Ethereum is increasingly viewed as a core holding, while Bitcoin maintains its status as a macroeconomic asset, albeit with a more mature and slower-growing ownership base.
The ongoing divergence in the ETH/BTC ratio is expected to be influenced by ETF inflows, on-chain activity, and broader global market liquidity conditions.
Ethereum Surpasses Bitcoin in Digital Asset Treasuries
An analysis by CryptoRank reveals that Ethereum has overtaken Bitcoin in digital asset treasuries (DATs) by total supply. Currently, 4.1% of Ethereum’s total supply is held by institutional treasuries, surpassing Bitcoin’s 3.6% and Solana’s 2.7%.
This increase in Ethereum’s holdings among DATs coincided with the signing of the GENIUS Act by former President Donald Trump, which brought new regulations to the stablecoin industry. Since then, institutional investors have ramped up their Ethereum holdings, recognizing ETH as a fundamental infrastructure asset in the DeFi ecosystem.
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